LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Fifth paragraph, first sentence of release should read: Mark F. O’Neil,
chairman and chief executive officer of Dealertrack Technologies, Inc.,
commented, “We are pleased to report strong first quarter results, with
revenue up 46 percent in total and up 21 percent on an organic basis
from a year ago. (instead of Mark F. O’Neil, chairman and chief
executive officer of Dealertrack Technologies, Inc., commented, “We are
pleased to report strong first quarter results, with revenue up 46
percent in total and up 18 percent on an organic basis from a year ago.).

The corrected release reads:

DEALERTRACK TECHNOLOGIES REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS

Reports 46% Year over Year Revenue Growth Including the Impact of
Acquisitions

Revenue for the quarter was $158.8 million, as compared to $109.1
million for 2013.

GAAP net loss for the quarter was $(11.6) million, as compared to
$(34,000) for 2013.

Diluted GAAP net loss per share for the quarter was $(0.25), as
compared to $(0.00) for 2013.

GAAP net loss for the quarter of 2014 was negatively impacted by a $7.5
million, or $0.16 per share, non-cash charges (net of taxes) relating to
changes in expected asset use as we integrate solutions and was
positively impacted by a $6.8 million, or $0.14 per share, gain (net of
taxes) on the sale of our investment in TrueCar, Inc.

Non-GAAP Results for the First Quarter 2014

Adjusted EBITDA for the quarter was $30.5 million, as compared to
$24.2 million for 2013.

Adjusted net income for the quarter was $11.5 million, as compared to
$12.0 million for 2013.

Diluted adjusted net income per share for the quarter was $0.23, as
compared to $0.27 for 2013.

Mark F. O’Neil, chairman and chief executive officer of Dealertrack
Technologies, Inc., commented, “We are pleased to report strong first
quarter results, with revenue up 46 percent in total and up 21 percent
on an organic basis from a year ago. In addition to a strong revenue
performance, the quarter was highlighted by the completion of our
transformative acquisition of Dealer.com. With our initial integration
efforts successfully underway, we are off to a strong start to 2014.
Continued momentum in our subscription business, combined with
advertising revenue from Dealer.com, is driving an increasing mix of
recurring revenue. We are also continuing to drive strong transaction
revenue growth, independent of car sales. We are becoming increasingly
optimistic about 2014, as reflected in our increased full year revenue
guidance, and believe we are positioned for continued growth as we
realize our vision of transforming automotive retailing.”

Revenue for the year is expected to be between $814.0 million and
$826.0 million, an increase from prior guidance of between $800.0
million and $816.0 million.

GAAP net loss for the year is expected to be between $(18.0) million
and $(12.0) million, a decrease from prior guidance of between $(13.0)
million and $(7.0) million.

Diluted GAAP net loss per share for the year is expected to be between
$(0.34) and $(0.23), a decrease from prior guidance of between $(0.24)
and $(0.13) per share.

Expected Non-GAAP Results

Dealertrack has not changed its prior non-GAAP guidance, which is as
follows:

Adjusted EBITDA for the year is expected to be between $180.0 millionand $188.0 million.

Adjusted net income for the year is expected to be between $78.0
millionand $84.0 million.

Diluted adjusted net income per share for the year is expected to be
between $1.42 and $1.53.

Diluted GAAP net loss is based on an estimated diluted share count of 53
million shares and adjusted net income per share is based on an
estimated diluted share count of 55 million shares guidance for the
year. The guidance also continues to assume that new car sales by
franchised dealers will be approximately 16.2 million units and used car
sales by franchised dealers will be approximately 15.9 million units in
2014.

Conference Call

Dealertrack will host a conference call to discuss its first quarter
2014 results, as well as its 2014 guidance, on May 12, 2014, at 5:00
p.m. Eastern Time. The conference call will be webcast live on the
Internet at ir.dealertrack.com. In addition, a live audio of the call
will be accessible to the public by calling 877-303-6648 (domestic) or
970-315-0443 (international); no access code is necessary. Callers
should dial in approximately 10 minutes before the call begins. A
webcast replay will be available on the Dealertrack Technologies, Inc.
website at www.dealertrack.com.

Non-GAAP Financial Measures

The non-GAAP measures of adjusted EBITDA and adjusted net income
disclosures are not presented in accordance with generally accepted
accounting principles (GAAP) and are not intended to be used in lieu of
GAAP presentations of net income (loss). Adjusted EBITDA is a non-GAAP
financial measure that represents GAAP net income (loss) excluding
interest, taxes, depreciation and amortization expenses, stock-based
compensation, contra-revenue and certain items, as applicable, such
as: impairment charges, restructuring charges, impact of
acquisition-related activity (including contingent consideration
changes, compensation expense, basis difference amortization, and
professional service fees), realized gains on sales of previously
impaired securities, gains or losses on sales or disposals of
subsidiaries and other assets, rebranding expense and certain other
items that we do not believe are indicative of our ongoing operating
results.

Adjusted net income is a non-GAAP financial measure that represents GAAP
net income (loss) excluding stock-based compensation expense, the
amortization of acquired identifiable intangibles, contra-revenue, and
certain items, as applicable, such as: impairment charges, restructuring
charges, impact of acquisition-related activity (including contingent
consideration changes, compensation expense, basis difference
amortization, and professional service fees), realized gains on sales of
previously impaired securities, gains or losses on sales or disposals of
subsidiaries and other assets, adjustments to deferred tax asset
valuation allowances, non-cash interest expense, rebranding expense and
certain other items that we do not believe are indicative of our ongoing
operating results. These adjustments to net income (loss), which are
shown before taxes, are adjusted for their tax impact at their
applicable statutory rates.

Adjusted EBITDA and adjusted net income are presented because management
believes that they provide additional information with respect to the
performance of our fundamental business activities and are also
frequently used by securities analysts, investors and other interested
parties in the evaluation of comparable companies.Adjusted
EBITDA and adjusted net income are also presented because the
acquisition method of accounting can have a negative impact on our GAAP
results because the depreciation and amortization expenses associated
with acquired assets, in particular intangibles which tend to have a
relatively short useful life, can be substantial in the first several
years following an acquisition. As a result, we monitor our adjusted
EBITDA and adjusted net income and other business statistics as a
measure of operating performance in addition to net income and the other
measures included in our consolidated financial statements. Management
believes the adjusted EBITDA and adjusted net income information is
useful to investors for these reasons. Adjusted EBITDA and adjusted net
income are non-GAAP financial measures and should not be viewed as an
alternative to GAAP measures of performance. Management believes the
most directly comparable GAAP financial measure for adjusted EBITDA and
adjusted net income is GAAP net income (loss) and has provided a
reconciliation of adjusted EBITDA to GAAP net income (loss) and adjusted
net income to GAAP net income (loss) in this press release.

Dealertrack Technologies' intuitive and high-value web-based software
solutions and services enhance efficiency and profitability for all
major segments of the automotive retail industry, including dealers,
lenders, OEMs, third-party retailers, aftermarket providers and other
service providers. In addition to the industry's largest online credit
application network, connecting more than 20,000 dealers with more than
1,400 lenders, Dealertrack Technologies delivers the industry's most
comprehensive solution set for automotive retailers, including Dealer
Management System (DMS),Inventory,
Sales
and F&I, Digital
Marketing and Registration
and Titling solutions. For more information visit www.dealertrack.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding Dealertrack’s expected 2014
performance based on both GAAP and non-GAAP measures, the long-term
outlook for its business and all other statements in this release other
than the recitation of historical facts are forward-looking statements
(as defined in the Private Securities Litigation Reform Act of 1995).
These statements involve a number of risks, uncertainties and other
factors that could cause actual results, performance or achievements of
Dealertrack to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements.

Factors that might cause such a difference include: economic trends that
affect the automotive retail industry or the indirect automotive
financing industry including the number of new and used cars sold;
credit availability; reductions in automotive dealerships; increased
competitive pressure from other industry participants, including Open
Dealer Exchange, RouteOne, CUDL, Finance Express and AppOne; the impact
of some vendors of software products for automotive dealers making it
more difficult for Dealertrack’s customers to use Dealertrack’s
solutions and services; security breaches, interruptions, failures
and/or other errors involving Dealertrack’s systems or networks; the
failure or inability to execute any element of Dealertrack’s business
strategy, including selling additional products and services to existing
and new customers; Dealertrack’s success in implementing an ERP system;
the volatility of Dealertrack’s stock price; new regulations or changes
to existing regulations; the integration of recent acquisitions and the
expected benefits, as well as the integration and expected benefits of
any future acquisitions that Dealertrack may pursue; Dealertrack’s
success in expanding its customer base and product and service
offerings, the impact of recent economic trends, and difficulties and
increased costs associated with raising additional capital; the
impairment of intangible assets, such as trademarks and goodwill; and
other risks listed in Dealertrack’s reports filed with the Securities
and Exchange Commission (SEC), including its most recent Annual Report
on Form 10-K. These filings can be found on Dealertrack’s website at www.dealertrack.com
and the SEC’s website at www.sec.gov.
Forward-looking statements included herein speak only as of the date
hereof and Dealertrack disclaims any obligation to revise or update such
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events or circumstances,
except as required by law.

DEALERTRACK TECHNOLOGIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended March 31,

2014

2013

Net revenue

$

158,808

$

109,059

Cost of revenue

89,907

48,210

Research and development

24,048

17,630

Selling, general and administrative

67,486

42,468

Total operating expenses

181,441

108,308

Income (loss) from operations

(22,633)

751

Interest expense, net

(5,810)

(3,240)

Other income, net

709

66

Gain on sale of investment

9,828

—

Earnings from equity method investment, net

1,625

1,219

Loss before benefit from income taxes, net

(16,281)

(1,204)

Benefit from income taxes, net

4,639

1,170

Net loss

$

(11,642)

$

(34)

Basic net loss per share

$

(0.25)

$

(0.00)

Diluted net loss per share

$

(0.25)

$

(0.00)

Weighted average common stock outstanding (basic)

47,351

43,173

Weighted average common stock outstanding (diluted)

47,351

43,173

Adjusted EBITDA (non-GAAP) (a)

$

30,514

$

24,229

Adjusted EBITDA margin (non-GAAP) (b)

19

%

22

%

Adjusted net income (non-GAAP) (a)

$

11,487

$

12,036

Shares used for diluted adjusted net income per share (c)

49,576

44,624

Diluted adjusted net income per share (non-GAAP)

$

0.23

$

0.27

Stock-based compensation expense was classified as follows:

Cost of revenue

$

276

$

271

Research and development

752

589

Selling, general and administrative

3,095

2,411

$

4,123

$

3,271

(a) See Reconciliation Data.(b) Represents adjusted EBITDA as a
percentage of net revenue.(c) For the three months ended March 31,
2014, the diluted weighted average shares outstanding of 49,576,000 does
not include 1,366,000 shares related to our senior convertible notes.

DEALERTRACK TECHNOLOGIES, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

March 31,

December 31,

2014

2013

ASSETS

Cash and cash equivalents

$

144,267

$

122,373

Marketable securities

5,147

10,589

Customer funds and customer funds receivable

35,601

25,901

Accounts receivable, net

97,529

48,349

Deferred tax assets, net

22,938

6,331

Prepaid expenses and other current assets

29,878

21,314

Total current assets

335,360

234,857

Property and equipment, net

77,043

31,866

Investments – cost and equity

36,652

119,318

Software and website development costs, net

70,648

62,513

Intangible assets, net

580,545

136,754

Goodwill

1,051,559

316,130

Deferred tax assets, net

56,862

40,421

Other assets – long-term

20,743

14,616

Total assets

$

2,229,412

$

956,475

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued expenses

$

100,226

$

56,942

Customer funds payable

35,601

25,901

Senior convertible notes, net

172,399

—

Deferred revenue

14,758

9,958

Deferred tax liabilities

4,277

4,278

Notes payable

2,577

2,000

Total current liabilities

329,838

99,079

Long-term liabilities

822,463

256,172

Total liabilities

1,152,301

355,251

Total stockholders' equity

1,077,111

601,224

Total liabilities and stockholders' equity

$

2,229,412

$

956,475

DEALERTRACK TECHNOLOGIES, INC.

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

Three Months Ended March 31,

2014

2013

Operating activities:

Net loss

$

(11,642

)

$

(34

)

Adjustments to reconcile net loss to net cash used in operating
activities:

Depreciation and amortization

31,291

13,897

Deferred tax benefit

(34,603

)

(1,158

)

Stock-based compensation expense

4,123

3,271

Provision for doubtful accounts and sales credits

3,114

1,682

Earnings from equity method investment, net

(1,625

)

(1,219

)

Deferred compensation

50

38

Stock-based compensation windfall tax benefit

(8,685

)

(3,587

)

Gain on sale of investment

(9,828

)

—

Realized gain on sale of securities

—

(11

)

Amortization of debt issuance costs and debt discount

3,170

2,302

Change in contingent consideration

(250

)

(500

)

Forfeited customer deposits

(648

)

—

Amortization of deferred interest

53

279

Changes in operating assets and liabilities, net of effects of
acquisitions:

(a) The tax impact of adjustments for the three months ended March 31,
2014 are based on a U.S. statutory tax rate of 38.7% applied to taxable
adjustments other than amortization of acquired identifiable
intangibles, stock-based compensation expense and gain on sale of
investment, which are based on a blended tax rate of 38.6%, 38.3% and
31.0%, respectively. Additionally, the tax impact of adjustments
includes $1.6 million of incremental deferred taxes related to the
acquisition of Dealer.com. The tax impact of adjustments for the three
months ended March 31, 2013 are based on a U.S. statutory tax rate of
38.2% applied to taxable adjustments other than amortization of acquired
identifiable intangibles and stock-based compensation expense, which are
based on a blended tax rate of 38.1% and 37.7%, respectively.

A reconciliation of GAAP to non-GAAP measures is included in our
investor presentation, which also includes the impact of reconciled
items on individual income statement classifications.

(b) The tax impact of adjustments are based on a blended tax rate of
36% applied to taxable adjustments.

DEALERTRACK TECHNOLOGIES, INC.

Summary of Business Statistics

Three months ended

(Unaudited)

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2014

2013

2013

2013

2013

Transaction services revenue (in thousands)

$

77,735

$

70,338

$

73,514

$

71,645

$

61,364

Subscription services revenue (in thousands)

$

61,969

$

49,107

$

45,223

$

44,623

$

42,778

Advertising and other revenue (in thousands)

$

19,104

$

6,666

$

5,845

$

5,514

$

4,917

Active dealers in our U.S. network as of end of the period (a)

20,719

20,046

20,238

20,205

20,041

Active lenders in our U.S. network as of end of the period (b)

1,443

1,410

1,378

1,355

1,291

Active lender to dealer relationships as of end of the period (c)

202,984

191,135

191,548

184,273

181,578

Transactions processed (in thousands) (d)

28,560

24,471

27,172

26,176

24,106

Average transaction price (e)

$

2.76

$

2.91

$

2.74

$

2.79

$

2.60

Transaction revenue per car sold (f)

$

11.20

$

8.63

$

7.70

$

7.38

$

8.99

Subscribing dealers in U.S. and Canada as of end of the period (g)

23,624

18,464

18,255

18,076

17,832

Average monthly subscription revenue per subscribing dealership (h)

$

956

$

815

$

758

$

757

$

737

Active dealerships on advertising platform as of end of the period (i)

7,053

*

*

*

*

Average advertising spend per dealer rooftop (j)

$

1,708

*

*

*

*

* Historical amounts not applicable

(a) We consider a dealer to be active in our U.S. network as of a date
if the dealer completed at least one revenue-generating credit
application processing transaction using the U.S. Dealertrack network
during the most recently ended calendar month. The number of active U.S.
dealers is based on the number of dealer accounts as communicated by
lenders on the U.S. Dealertrack network.

(b) We consider a lender to be active in our U.S. network as of a date
if it is accepting credit application data electronically from U.S.
dealers in the U.S. Dealertrack network.

(c) Each lender to dealer relationship represents a pair between an
active U.S. lender and an active U.S. dealer at the end of a given
period.

(d) Represents revenue-generating transactions processed in the U.S.
Dealertrack, Dealertrack Aftermarket Services, Registration and Titling
Solutions, Collateral Management Solutions and Dealertrack Canada
networks at the end of a given period.

(e) Represents the average revenue earned per transaction processed in
the U.S. Dealertrack, Dealertrack Aftermarket Services, Registration and
Titling Solutions, Collateral Management Solutions and Dealertrack
Canada networks during a given period. Revenue used in the calculation
adds back (excludes) transaction related contra-revenue.

(f) Represents transaction services revenue divided by our estimate of
total new and used car sales for the period in the U.S. and Canada.
Revenue used in calculation adds back (excludes) transaction related
contra-revenue.

(g) Represents the number of dealerships in the U.S. and Canada with one
or more active subscriptions at the end of a given period. Subscriptions
to Dealertrack CentralDispatch have been excluded as these customers
include brokers and carriers in addition to dealers.

(h) Represents subscription services revenue divided by average
subscribing dealers for a given period in the U.S. and Canada. Revenue
used in the calculation adds back (excludes) subscription related
contra-revenue. In addition, subscribing dealers and subscription
services revenue from Dealertrack CentralDispatch have been excluded
from the calculation as a majority of these customers are not dealers.

(i) We consider a dealership to be active on our advertising platform as
of a date if they incurred advertising spend in that month.

(j) Represents advertising services revenue divided by average active
dealerships on our advertising platform for a given period.